Monday, July 25, 2016

Wall Street flexes with energy in anticipation of the Fed – Boursorama

* Loss of 0.42% for the Dow, 0.3% for the S & amp; P, 0.05% for the Nasdaq (Updated with details, currency and bond of elements) by Yashaswini Swamynathan and Noel Randewich NEW YORK, July 25 (Reuters) – Wall Street finished in the red the first session of the week in the wake of the energy sector values, victims of the sharp decline in oil prices, and on the eve of the monetary policy meeting of the Federal Reserve. This negative early week comes to a brake on a rally started on June 27 and which has advanced 9% Wall Street. No rate change is expected at the end of the meeting held on Tuesday and Wednesday but some professionals, minority, wonder if the resistance of the markets in the British vote for the “Brexit” and if the good US economic indicators recently published will not lead the central bank to raise expectations for its next meeting in September. However, traders do assess that 14.7% probability of a rate hike in September and 38.5% in December, according to FedWatch tool of CME Group. In such a context waiting not only the Fed but also the Bank of Japan (BoJ), which holds meeting on Friday, the dollar weakened against the yen JPY = and against a reference currency basket .DXY. Oil prices are in turn fell to their lowest levels in two and a half months, the market bottleneck situation still weighing on sentiment traders. The Dow Jones .DJI lost 77.79 point (0.42%) to 18,493.06 points. The S & amp; P 500 .SPx broader yielded 6.55 point (0.30%) to 2,168.48. The Nasdaq Composite .IXIC left 2.53 point (0.05%) to 5,097.63. The S & amp index; P energy .SPNY loses almost 2% stronger sectoral decline in the session. Nine of the 10 major sector indices of the S & amp; P 500 ended in the red. Publications this week, high tech heavyweight Apple AAPL.O alphabet GOOGL.O, Amazon.com and Facebook FB.O AMZN.O will be scanned, investors poseat questions on valuations already strained the S & amp; P after its recent highs. These four companies together weigh 7% of the S & amp index; P and Nasdaq fifth. Of the 125 company in the S & amp; P 500 that have released their quarterly far, 68% exceeded the consensus, more than the usual average of 63%, according to Thomson Reuters data. Overall, profits of companies in the S & amp; P 500 are expected down 3.7% in the second quarter, while the percentage was 5% at the beginning of the “season” of the results. “The second quarter results are more fleshed out than we would have thought but, for one reason or another, the market is obsessed with oil prices today,” said Kim Forrest, Fort Pitt Capital analyst group. “It looks like the market can not keep one thought at a time.” “We are approaching extremes in terms of valuations, the market tries to catch his breath,” noted David Schiegoleit (Private Client Reserve of U.S. Bank). Values, Yahoo YHOO.O sold 2.7% after Verizon Communications VZ.N had announced the purchase of its internet activities to $ 4.83 billion, thus ending a long and painful process to auction one pioneer of the web. Verizon has left 0.4%. Sprint S.N surged ahead 27.7%. The fourth US mobile operator posted sales slightly better than expected, significant rebates that enabled it to achieve the best quarter in nine years in terms of net gain of postpaid subscribers. Apple AAPL.O lost 1.34% on the eve of the publication of its quarterly, BGC through having reduced its recommendation to “sell,” according to CNBC. Texas Instruments TXN.O gained 1.1%, before the release of its second quarter results after the close. The chipmaker reported a profit increase of 12% in the second quarter and its shares rose 6% in after-hours trading. Gilead GILD.O Siences it has sold 3% in after-hours trading in reaction to a statement. Volume was light, with about 5.9 billion shares traded, below the daily average of nearly seven billion of the last 20 meetings. On the bond market, the yield of Treasuries in two years reached a peak of 0.731% four weeks because of a poor auction of paper to two years, creating a demand that had never been this low since December 2008. (Wilfrid Exbrayat for the french service)

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